S.50 PMLA Statement Given In ED Custody Inadmissible: Madhya Pradesh HC Gives Bail To Man Booked For Importing Poppy Seeds Worth Rs 140 Cr

Referring to various Supreme Court judgments including Pankaj Bansal Vs. Union of India and Arvind Kejriwal v Directorate of Enforcement, Justice Prakash Chandra Gupta in its order said, “ After considering the judgments referred above, it is apparent that in case of non-compliance of section 19 of the PMLA, the court shall examine the material and resources whereby the authorized officer has to give reason to belief the guilt of accused and the court has to give reason to belief of not guilty of offence i.e. In doing so it also observed that in the present case the opinion formed by the ED under Section 19 of the PMLA with respect to the guilt of the applicant, is based upon the statement of the co-accused person which is "prima facie" inadmissible. While allowing a man's bail plea booked for money laundering under the Prevention of Money Laundering Act, the Indore bench of the Madhya Pradesh High Court has reiterated that statements of the accused recorded by the investigating agency under Section 50 PMLA while he was in custody shall be inadmissible against him. The applicant's counsel contented that the ED did not comply with the provisions under Section 19 of PMLA wherein reasons were not recorded by the prosecution for the arrest of the applicant and reasons which are recorded are based on statement of co-accused persons which is not admissible in evidence.